STORY: Tesla delivered 17.9% fewer electric vehicles in the second quarter from the previous quarter, as China's COVID 19-related shutdown disrupted its production and supply chain.
The world's biggest electric car maker said on Saturday that it delivered 254,695 vehicles in the April to June period, compared with 310,048 vehicles in the preceding quarter, ending a nearly two-year-long run of record quarterly deliveries.
A resurgence in COVID-19 cases in China had forced Tesla to temporarily suspend production at its Shanghai factory and also affected suppliers' facilities in the country.
Tesla is ramping up production at the Shanghai factory with the easing of the COVID-19 lockdown, which will help boost deliveries in the second half.
China has been instrumental in Tesla's rapid increase of vehicle production, with the low-cost, lucrative Shanghai factory producing roughly half of the company's total cars delivered last year.
CEO Elon Musk has said demand for Tesla vehicles remains strong, but supply-chain challenges still remain.
Early in June, Musk told executives that he had a "super bad feeling" about the economy and needed to cut about 10% of staff at the electric car maker.
Tesla shares have fallen 35% so far this year, hit by Musk's $44 billion proposed acquisition of Twitter, the China lockdown and macroeconomic uncertainties.